1. To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. Supplement D - Simulation

2. To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. Simulation Process

3. To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. Simulation Process Weekly ProductionRelative Requirements (hr)Frequency 2000.05 2500.06 3000.17 3500.05 4000.30 4500.15 5000.06 5500.14 6000.02 Total1.00 Example D.1

4. To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. Simulation Process Weekly ProductionRelative Requirements (hr)Frequency 2000.05 2500.06 3000.17 3500.05 4000.30 4500.15 5000.06 5500.14 6000.02 Total1.00 Average weekly production requirements = Example D.1

5. To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. Simulation Process Weekly ProductionRelative Requirements (hr)Frequency 2000.05 2500.06 3000.17 3500.05 4000.30 4500.15 5000.06 5500.14 6000.02 Total1.00 Average weekly production requirements = 200(0.05) Example D.1

6. To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. Simulation Process Weekly ProductionRelative Requirements (hr)Frequency 2000.05 2500.06 3000.17 3500.05 4000.30 4500.15 5000.06 5500.14 6000.02 Total1.00 Average weekly production requirements = 200(0.05) + 250(0.06) Example D.1

7. To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. Simulation Process Weekly ProductionRelative Requirements (hr)Frequency 2000.05 2500.06 3000.17 3500.05 4000.30 4500.15 5000.06 5500.14 6000.02 Total1.00 Average weekly production requirements = 200(0.05) + 250(0.06) + 300(0.17) + … + 600(0.02) = 400 hours Example D.1

8. To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. Simulation Process Weekly ProductionRelative Requirements (hr)Frequency 2000.05 2500.06 3000.17 3500.05 4000.30 4500.15 5000.06 5500.14 6000.02 Total1.00 Average weekly production requirements = 400 hours Example D.1

9. To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. Simulation Process Weekly ProductionRelative Requirements (hr)Frequency 2000.05 2500.06 3000.17 3500.05 4000.30 4500.15 5000.06 5500.14 6000.02 Total1.00 RegularRelative Capacity (hr)Frequency 320 (8 machines)0.30 360 (9 machines)0.40 400 (10 machines)0.30 Average weekly production requirements = 400 hours Example D.1

10. To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. Simulation Process Weekly ProductionRelative Requirements (hr)Frequency 2000.05 2500.06 3000.17 3500.05 4000.30 4500.15 5000.06 5500.14 6000.02 Total1.00 RegularRelative Capacity (hr)Frequency 320 (8 machines)0.30 360 (9 machines)0.40 400 (10 machines)0.30 Average weekly production requirements = 400 hours Average weekly operating machine hours = Example D.1

11. To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. Simulation Process Weekly ProductionRelative Requirements (hr)Frequency 2000.05 2500.06 3000.17 3500.05 4000.30 4500.15 5000.06 5500.14 6000.02 Total1.00 RegularRelative Capacity (hr)Frequency 320 (8 machines)0.30 360 (9 machines)0.40 400 (10 machines)0.30 Average weekly production requirements = 400 hours Average weekly operating machine hours = 320(0.30) Example D.1

12. To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. Simulation Process Weekly ProductionRelative Requirements (hr)Frequency 2000.05 2500.06 3000.17 3500.05 4000.30 4500.15 5000.06 5500.14 6000.02 Total1.00 RegularRelative Capacity (hr)Frequency 320 (8 machines)0.30 360 (9 machines)0.40 400 (10 machines)0.30 Average weekly production requirements = 400 hours Average weekly operating machine hours = 320(0.30) + 360(0.40) + Example D.1

13. To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. Simulation Process Weekly ProductionRelative Requirements (hr)Frequency 2000.05 2500.06 3000.17 3500.05 4000.30 4500.15 5000.06 5500.14 6000.02 Total1.00 RegularRelative Capacity (hr)Frequency 320 (8 machines)0.30 360 (9 machines)0.40 400 (10 machines)0.30 Average weekly production requirements = 400 hours Average weekly operating machine hours = 320(0.30) + 360(0.40) + 400(0.30) Example D.1

14. To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. Simulation Process Weekly ProductionRelative Requirements (hr)Frequency 2000.05 2500.06 3000.17 3500.05 4000.30 4500.15 5000.06 5500.14 6000.02 Total1.00 RegularRelative Capacity (hr)Frequency 320 (8 machines)0.30 360 (9 machines)0.40 400 (10 machines)0.30 Average weekly production requirements = 400 hours Average weekly operating machine hours = 320(0.30) + 360(0.40) + 400(0.30) = 360 hours Example D.1

15. To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. Simulation Process Weekly ProductionRelative Requirements (hr)Frequency 2000.05 2500.06 3000.17 3500.05 4000.30 4500.15 5000.06 5500.14 6000.02 Total1.00 RegularRelative Capacity (hr)Frequency 320 (8 machines)0.30 360 (9 machines)0.40 400 (10 machines)0.30 Average weekly production requirements = 400 hours Average weekly operating machine hours = 360 hours Example D.1

16. To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. Simulation Process Weekly ProductionRelative Requirements (hr)Frequency 2000.05 2500.06 3000.17 3500.05 4000.30 4500.15 5000.06 5500.14 6000.02 Total1.00 RegularRelative Capacity (hr)Frequency 320 (8 machines)0.30 360 (9 machines)0.40 400 (10 machines)0.30 Example D.1 Average weekly production requirements = 400 hours Average weekly operating machine hours = 360 hours RegularRelative Capacity (hr)Frequency 360 (9 machines)0.30 400 (10 machines)0.40 440 (11 machines)0.30

17. To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. Average weekly production requirements = 400 hours RegularRelative Capacity (hr)Frequency 320 (8 machines)0.30 360 (9 machines)0.40 400 (10 machines)0.30 Average weekly operating machine hours = 360 hours RegularRelative Capacity (hr)Frequency 360 (9 machines)0.30 400 (10 machines)0.40 440 (11 machines)0.30 Table D.1 Simulation Process Event Weekly Demand (hr)Probability

18. To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. Average weekly production requirements = 400 hours RegularRelative Capacity (hr)Frequency 320 (8 machines)0.30 360 (9 machines)0.40 400 (10 machines)0.30 Average weekly operating machine hours = 360 hours RegularRelative Capacity (hr)Frequency 360 (9 machines)0.30 400 (10 machines)0.40 440 (11 machines)0.30 Table D.1 Simulation Process Event Weekly Demand (hr)Probability 2000.05 2500.06 3000.17 3500.05 4000.30 4500.15 5000.06 5500.14 6000.02

19. To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. Average weekly production requirements = 400 hours RegularRelative Capacity (hr)Frequency 320 (8 machines)0.30 360 (9 machines)0.40 400 (10 machines)0.30 Average weekly operating machine hours = 360 hours RegularRelative Capacity (hr)Frequency 360 (9 machines)0.30 400 (10 machines)0.40 440 (11 machines)0.30 Table D.1 Simulation Process Event Weekly RandomWeeklyRandom Demand (hr)ProbabilityNumbersCapacity (hr)ProbabilityNumbers 2000.05 2500.06 3000.17 3500.05 4000.30 4500.15 5000.06 5500.14 6000.02

20. To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. Average weekly production requirements = 400 hours RegularRelative Capacity (hr)Frequency 320 (8 machines)0.30 360 (9 machines)0.40 400 (10 machines)0.30 Average weekly operating machine hours = 360 hours RegularRelative Capacity (hr)Frequency 360 (9 machines)0.30 400 (10 machines)0.40 440 (11 machines)0.30 Table D.1 Simulation Process Event Weekly RandomWeeklyRandom Demand (hr)ProbabilityNumbersCapacity (hr)ProbabilityNumbers 2000.0500–04 2500.0605–10 3000.1711–27 3500.0528–32 4000.3033–62 4500.1563–77 5000.0678–83 5500.1484–97 6000.0298–99

21. To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. Average weekly production requirements = 400 hours RegularRelative Capacity (hr)Frequency 320 (8 machines)0.30 360 (9 machines)0.40 400 (10 machines)0.30 Average weekly operating machine hours = 360 hours RegularRelative Capacity (hr)Frequency 360 (9 machines)0.30 400 (10 machines)0.40 440 (11 machines)0.30 Table D.1 Simulation Process Event Weekly RandomWeeklyRandom Demand (hr)ProbabilityNumbersCapacity (hr)ProbabilityNumbers 2000.0500–043200.30 2500.0605–103600.40 3000.1711–274000.30 3500.0528–32 4000.3033–62 4500.1563–77 5000.0678–83 5500.1484–97 6000.0298–99

22. To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. Average weekly production requirements = 400 hours RegularRelative Capacity (hr)Frequency 320 (8 machines)0.30 360 (9 machines)0.40 400 (10 machines)0.30 Average weekly operating machine hours = 360 hours RegularRelative Capacity (hr)Frequency 360 (9 machines)0.30 400 (10 machines)0.40 440 (11 machines)0.30 Table D.1 Simulation Process Event Weekly RandomWeeklyRandom Demand (hr)ProbabilityNumbersCapacity (hr)ProbabilityNumbers 2000.0500–043200.3000–29 2500.0605–103600.4030–69 3000.1711–274000.3070–99 3500.0528–32 4000.3033–62 4500.1563–77 5000.0678–83 5500.1484–97 6000.0298–99

23. To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. Average weekly production requirements = 400 hours RegularRelative Capacity (hr)Frequency 320 (8 machines)0.30 360 (9 machines)0.40 400 (10 machines)0.30 Average weekly operating machine hours = 360 hours RegularRelative Capacity (hr)Frequency 360 (9 machines)0.30 400 (10 machines)0.40 440 (11 machines)0.30 Table D.1 Simulation Process Event Weekly RandomWeeklyRandom Demand (hr)ProbabilityNumbersCapacity (hr)ProbabilityNumbers 2000.0500–043200.3000–29 2500.0605–103600.4030–69 3000.1711–274000.3070–99 3500.0528–32 4000.3033–62 4500.1563–77 5000.0678–83 5500.1484–97 6000.0298–99 Simulation Process

24. To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. Average weekly production requirements = 400 hours RegularRelative Capacity (hr)Frequency 320 (8 machines)0.30 360 (9 machines)0.40 400 (10 machines)0.30 Average weekly operating machine hours = 360 hours RegularRelative Capacity (hr)Frequency 360 (9 machines)0.30 400 (10 machines)0.40 440 (11 machines)0.30 Table D.1 Simulation Process Event Weekly RandomWeeklyRandom Demand (hr)ProbabilityNumbersCapacity (hr)ProbabilityNumbers 2000.0500–043200.3000–29 2500.0605–103600.4030–69 3000.1711–274000.3070–99 3500.0528–32 4000.3033–62 4500.1563–77 5000.0678–83 5500.1484–97 6000.0298–99 Simulation Process 1.Draw a random number. 2.Find the random number interval for production. 3.Record the production hours. 4.Draw another random number. 5.Find the random number interval for capacity. 6.Record the capacity hours. 7.If CAP ≥ PROD, then IDLE HR = CAP – PROD. 8.If CAP < PROD, then SHORT = PROD – CAP. If SHORT ≤ 100, then OVERTIME HR = SHORT and SUBCONTRACT HR = 0. If SHORT > 100, then OVERTIME HR = 100 and SUBCONTRACT HR = SHORT – 100. 9.Repeat steps 1–8 to simulate 20 weeks.

25. To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. Average weekly production requirements = 400 hours RegularRelative Capacity (hr)Frequency 320 (8 machines)0.30 360 (9 machines)0.40 400 (10 machines)0.30 Average weekly operating machine hours = 360 hours RegularRelative Capacity (hr)Frequency 360 (9 machines)0.30 400 (10 machines)0.40 440 (11 machines)0.30 Table D.2 Simulation Process Event Weekly RandomWeeklyRandom Demand (hr)ProbabilityNumbersCapacity (hr)ProbabilityNumbers 2000.0500-043200.3000-29 2500.0605-103600.4030-69 3000.1711-274000.3070-99 3500.0528-32 4000.3033-62 4500.1563-77 5000.0678-83 5500.1484-97 6000.0298-99 Simulation Process 1.Draw a random number. 2.Find the random number interval for production. 3.Record the production hours. 4.Draw another random number. 5.Find the random number interval for capacity. 6.Record the capacity hours. 7.If CAP ≥ PROD, then IDLE HR = CAP - PROD. 8.If CAP < PROD, then SHORT = PROD - CAP. If SHORT ≤ 100, then OVERTIME HR = SHORT and SUBCONTRACT HR = 0. If SHORT > 100, then OVERTIME HR = 100 and SUBCONTRACT HR = SHORT - 100. 9.Repeat steps 1-8 to simulate 20 weeks. 10 Machines Existing DemandWeeklyCapacityWeeklySub- RandomProductionRandomCapacityIdleOvertimecontract WeekNumber(hr)Number(hr)HoursHoursHours

26. To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. Average weekly production requirements = 400 hours RegularRelative Capacity (hr)Frequency 320 (8 machines)0.30 360 (9 machines)0.40 400 (10 machines)0.30 Average weekly operating machine hours = 360 hours RegularRelative Capacity (hr)Frequency 360 (9 machines)0.30 400 (10 machines)0.40 440 (11 machines)0.30 Table D.2 Simulation Process Event Weekly RandomWeeklyRandom Demand (hr)ProbabilityNumbersCapacity (hr)ProbabilityNumbers 2000.0500-043200.3000-29 2500.0605-103600.4030-69 3000.1711-274000.3070-99 3500.0528-32 4000.3033-62 4500.1563-77 5000.0678-83 5500.1484-97 6000.0298-99 Simulation Process 1.Draw a random number. 2.Find the random number interval for production. 3.Record the production hours. 4.Draw another random number. 5.Find the random number interval for capacity. 6.Record the capacity hours. 7.If CAP ≥ PROD, then IDLE HR = CAP - PROD. 8.If CAP < PROD, then SHORT = PROD - CAP. If SHORT ≤ 100, then OVERTIME HR = SHORT and SUBCONTRACT HR = 0. If SHORT > 100, then OVERTIME HR = 100 and SUBCONTRACT HR = SHORT - 100. 9.Repeat steps 1-8 to simulate 20 weeks. 10 Machines Existing DemandWeeklyCapacityWeeklySub- RandomProductionRandomCapacityIdleOvertimecontract WeekNumber(hr)Number(hr)HoursHoursHours 1714505036090 2684505436090 3484001132080 49960036360100140 5644508240050 61330087400100 7364004136040 85840071400 9133000032020 10935506036010090 Total490830360 Weekly average24.541.518.0

27. To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. Average weekly production requirements = 400 hours RegularRelative Capacity (hr)Frequency 320 (8 machines)0.30 360 (9 machines)0.40 400 (10 machines)0.30 Average weekly operating machine hours = 360 hours RegularRelative Capacity (hr)Frequency 360 (9 machines)0.30 400 (10 machines)0.40 440 (11 machines)0.30 Table D.2 Simulation Process Event Weekly RandomWeeklyRandom Demand (hr)ProbabilityNumbersCapacity (hr)ProbabilityNumbers 2000.0500-043200.3000-29 2500.0605-103600.4030-69 3000.1711-274000.3070-99 3500.0528-32 4000.3033-62 4500.1563-77 5000.0678-83 5500.1484-97 6000.0298-99 Simulation Process 1.Draw a random number. 2.Find the random number interval for production. 3.Record the production hours. 4.Draw another random number. 5.Find the random number interval for capacity. 6.Record the capacity hours. 7.If CAP ≥ PROD, then IDLE HR = CAP - PROD. 8.If CAP < PROD, then SHORT = PROD - CAP. If SHORT ≤ 100, then OVERTIME HR = SHORT and SUBCONTRACT HR = 0. If SHORT > 100, then OVERTIME HR = 100 and SUBCONTRACT HR = SHORT - 100. 9.Repeat steps 1-8 to simulate 20 weeks. 10 Machines Existing DemandWeeklyCapacityWeeklySub- RandomProductionRandomCapacityIdleOvertimecontract WeekNumber(hr)Number(hr)HoursHoursHours 1714505036090 2684505436090 3484001132080 49960036360100140 5644508240050 61330087400100 7364004136040 85840071400 9133000032020 10935506036010090 Total490830360 Weekly average24.541.518.0 Comparison of 1000-week Simulations 10 Machines11 Machines

28. To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. Average weekly production requirements = 400 hours RegularRelative Capacity (hr)Frequency 320 (8 machines)0.30 360 (9 machines)0.40 400 (10 machines)0.30 Average weekly operating machine hours = 360 hours RegularRelative Capacity (hr)Frequency 360 (9 machines)0.30 400 (10 machines)0.40 440 (11 machines)0.30 Table D.2 Simulation Process Event Weekly RandomWeeklyRandom Demand (hr)ProbabilityNumbersCapacity (hr)ProbabilityNumbers 2000.0500-043200.3000-29 2500.0605-103600.4030-69 3000.1711-274000.3070-99 3500.0528-32 4000.3033-62 4500.1563-77 5000.0678-83 5500.1484-97 6000.0298-99 Simulation Process 1.Draw a random number. 2.Find the random number interval for production. 3.Record the production hours. 4.Draw another random number. 5.Find the random number interval for capacity. 6.Record the capacity hours. 7.If CAP ≥ PROD, then IDLE HR = CAP - PROD. 8.If CAP < PROD, then SHORT = PROD - CAP. If SHORT ≤ 100, then OVERTIME HR = SHORT and SUBCONTRACT HR = 0. If SHORT > 100, then OVERTIME HR = 100 and SUBCONTRACT HR = SHORT - 100. 9.Repeat steps 1-8 to simulate 20 weeks. 10 Machines Existing DemandWeeklyCapacityWeeklySub- RandomProductionRandomCapacityIdleOvertimecontract WeekNumber(hr)Number(hr)HoursHoursHours 1714505036090 2684505436090 3484001132080 49960036360100140 5644508240050 61330087400100 7364004136040 85840071400 9133000032020 10935506036010090 Total490830360 Weekly average24.541.518.0 Comparison of 1000-week Simulations 10 Machines11 Machines Idle hours26.042.2 Overtime hours48.334.2 Subcontract hours18.48.7 Cost$1,851.50$1,159.50

29. To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. Simulation Process Example D.3

30. To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. Simulation Process X X X X X X X Gate house Not to scale Checkpoint #1 Checkpoint #3 (rarely used) Checkpoint #2 Figure D.1

31. To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. Simulation Process X X X X X X X Gate house Not to scale Checkpoint #1 Checkpoint #3 (rarely used) Checkpoint #2 Figure D.2 12 – 10 – 8 – 6 – 4 – 2 – 0 – |||||| 7:007:107:207:307:407:508:00 Time Arrivals (vehicles/min) STANDARD VEHICLEAVERAGEDEVIATION Cars10 3 Vanpools30 9 Buses5010 INSPECTION TIME (sec)

32. To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. Simulation Process Figure D.3(a)

33. To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. Simulation Process X X X X X X X Gate house Not to scale Checkpoint #1 Checkpoint #3 (rarely used) Checkpoint #2 12 – 10 – 8 – 6 – 4 – 2 – 0 – |||||| 7:007:107:207:307:407:508:00 Time Arrivals (vehicles/min) STANDARD VEHICLEAVERAGEDEVIATION Cars103 Vanpools309 Buses5010 INSPECTION TIME (sec) Figure D.3(b)

34. To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. Simulation Process X X X X X X X Gate house Not to scale Checkpoint #1 Checkpoint #3 (rarely used) Checkpoint #2 12 – 10 – 8 – 6 – 4 – 2 – 0 – |||||| 7:007:107:207:307:407:508:00 Time Arrivals (vehicles/min) STANDARD VEHICLEAVERAGEDEVIATION Cars103 Vanpools309 Buses5010 INSPECTION TIME (sec) Figure D.3(c)